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World News See other World News Articles Title: Neo-communists want to take Australia down under The Reserve Bank has been warned it may have to buy up coal mines and fossil-fuel power stations as part of extraordinary actions to save the economy from climate change-induced financial disaster. As Australian business leaders grow increasingly worried climate change will hit their bottom lines and the International Monetary Fund warns global warming is now a major financial risk, a new warning issued by the world's top central bank says the RBA could be forced into rescuing the economy and the environment. Duration 1:09 Concerns climate change could cause the next financial crisis The RBA is warning climate change could lead to the next global financial break down. Three separate reports released on the same day, coinciding with Australia's worst bushfire season and ongoing political division over environmental policy, point to increasing fears among economic policy leaders that climate change could cause the next global financial breakdown. The Bank for International Settlements, which acts as the central bank to the world's central banks, overnight told its members they had to start incorporating climate change into their thinking about the stability of the economy. The global financial crisis was described by some experts as a "black swan" - an economic event that is extremely unexpected with wide-ranging effects. The BIS said central banks would now have to start thinking about "green swan" events, which would force them into saving the global financial system from the impact of climate change. During the global financial crisis some central banks directly intervened to save private banks and insurance firms as part of a program to protect the economy. The BIS said this could be a template in the case of climate change with central banks buying up distressed assets. "In the worst case scenario, central banks may have to confront a situation where they are called upon by their local constituencies to intervene as climate rescuers of last resort," it said. The BIS said climate change events that severely affected the financial health of the banking and insurance sectors could force central banks to intervene and "buy a large set of carbon-intensive assets". Many central banks including the RBA have raised concerns about the impact of climate change on the local economy, but the BIS said they will have to be more forceful. It said "catastrophic and irreversible" impacts from climate change may make it impossible to determine the full extent of the damage caused to the global economy. Banks could not take a "wait and see" approach. Poster Comment: Australia is the test-bed for neo-communism ("Third Way" corporate communism). Post Comment Private Reply Ignore Thread
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